Canalys: Southeast Asia smartphone shipments reached 25 million units in the third quarter of 2024, a year-on-year increase of 15%

Canalys' latest research shows that the Southeast Asian smartphone market will grow 15% year-on-year to 25 million units in the third quarter of 2024. In the Southeast Asian smartphone market, OPPO led with 5.1 million shipments and 21% market share, mainly due to its renamed entry-level models A3x and A3. Samsung followed closely with 16% market share and 23% value share. The value that exceeds the volume share reflects its ongoing premium strategy, which prioritizes ASP growth over shipment growth. Transsion ranked third with 4 million units shipped and 16% market share. Its rapid growth appears to be stabilizing as the company shifts its focus from expanding market share to improving profitability and value in the coming quarters. Xiaomi ranked fourth with a market share of 15% and shipments of 3.9 million units, thanks to strong growth in competitively priced models such as Redmi 14C and A3. Vivo, which ranked in the top five, shipped 2.6 million units and accounted for 10% of the market share.

“The volume growth in the third quarter of 2024 was accompanied by a 4% decline in the region’s average selling price,” said Canalys analyst Sheng Win Chow. “This price decline was mainly due to an increase in new product launches and oversaturation of low- and mid-range devices. Vendors, especially in the mass market ($100-$300), have found it difficult to differentiate themselves beyond price and affordability, leading to a heavy reliance on promotions and discounts to drive volumes. In addition, deep discounts on older models have compounded the problem by creating price conflicts with new model launches. This ‘price war’ is becoming increasingly unsustainable. Rising bill of materials (BOMs) and inflationary costs in sales activities are reducing profitability. In response to these pressures, vendors are consolidating their entry-level portfolios to achieve lower costs and clearer product segmentation. For example, OPPO’s A3x simplified the entry-level offering into a single model, driving volumes through better pricing. Samsung’s strategy is similar – this year’s A06 did not launch an A0s version as the difference between the A06 and A16 series was more obvious.”

Canalys analyst Le Xuan Chiew said: “The changing 5G landscape in Vietnam has made it a key battleground in the mid-range smartphone market. The high activation cost of 5G devices makes it challenging to launch affordable 5G devices. OPPO has benefited in recent quarters, gaining market share with a strong lineup of competitive 4G devices in the US$175-250 price range. However, as the rollout of 5G accelerates with the efforts of network operators and support from the government, the outlook for affordable 5G devices will improve. As an early leader in 5G, Samsung is well positioned to regain market share and build strong relationships with telcos. To remain competitive, other brands will need to adapt their products to align with initiatives to promote 5G adoption. Xiaomi’s recent success in Malaysia is a role model. Its strategic expansion in early 2024 enabled its high-end Mi 14T series to be launched across all telcos, improving pricing and ease of use.”

Canalys analyst Le Xuan Chiew added: "Canalys expects ASPs to trend upward in the future despite the current price decline. Brands are using different channel strategies to create product differentiation and segmentation. OPPO and Samsung are increasing their investment in high-end experience stores in Southeast Asia to increase brand awareness and capture replacement demand. Honor and Xiaomi are expanding their partnerships with mobile operators in Thailand and Malaysia, using these channels to reach a wider audience. Apple achieved 34% year-on-year growth in the region through active expansion of distribution channels and branded stores, further highlighting the region's potential as a key market for premium smartphone brands. Despite Southeast Asia's huge potential, a one-size-fits-all approach is ineffective. Suppliers must remain flexible to respond to local market challenges. Indonesia's recent ban on the iPhone 16 is a good example due to disputes over Apple's investment commitments. Despite this, Chinese OEMs that meet Indonesia's localization requirements have also achieved significant success, highlighting the importance of localization in this region."